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Top Penny Stocks Picks on Wealthsimple Trade

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Written by Timothy Sykes
Updated 5/9/2023 14 min read

The first step in trading penny stocks is selecting a broker — if you’ve gone with Wealthsimple Trade, you may need some strategy tweaks.

Wealthsimple Trade is a Canada-based broker, but it also lets you trade U.S. listed stocks. It’s limited in some important ways for penny stock trading. It won’t let you trade over-the-counter (OTC) stocks, which comprise a large part of my strategy.

If your strategy doesn’t rely on OTC stocks and you’re Canadian, this broker might be right for you!

One of the most important steps to choosing the right broker is learning its ins and outs. Read on to learn more about trading penny stocks on Wealthsimple Trade!

Trading on Wealthsimple Trade

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Wealthsimple “Trade” is somewhat of a misnomer — despite its name, this brokerage focuses more on investment than trading. Wealthsimple Trade lacks a power stock trading platform, making it more like a Chase account than like Interactive Brokers.

Wealthsimple’s platform options break down into the following:

  • Wealthsimple Trade, its stock trading platform
  • Wealthsimple Invest, its automated trading platform with a robo-advisor
  • Wealthsimple Crypto, its cryptocurrency trading platform (no NFTs though)

Due to its limits, Wealthsimple isn’t the best option for active traders. Penny stocks are fast-moving by their nature. Losing a few seconds can really affect your bottom line.

If this is news to you, check out my FREE penny stock guide.

Can I Buy Penny Stocks on Wealthsimple?

timothy sykes in matera in 2022
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You can buy penny stocks on Wealthsimple Trade if they’re listed on the major American and Canadian exchanges. Wealthsimple Trade lets you access Nasdaq, New York Stock Exchange (NYSE), and Toronto Stock Exchange (TSX) penny stocks.

Unfortunately, Wealthsimple Trade doesn’t let you trade OTC stocks. There’s a pre-approved list of seven American and Canadian exchanges on Wealthsimple Trade, and you can only trade assets on those exchanges.

I don’t like being limited by my broker. This tweet references Robinhood, but it also applies to Wealthsimple Trade…

If you want to trade outside the larger exchanges and access the larger penny stock market, I suggest choosing another broker to supplement or even replace Wealthsimple Trade entirely.

How to Find Penny Stocks on Wealthsimple Trade

Like most online brokerages, you can find penny stocks on Wealthsimple Trade through its stock screener. You can search by price — unfortunately, you can’t do much else.

If you want a more powerful stock screener, try the one built into StocksToTrade. This is a penny stock trading platform built by traders for traders. I had a hand designing it, which means it’s got just about everything a successful penny stock trader needs.

StocksToTrade is my secret weapon — sign up to the 14-day trial for $7 and it can be yours too.

Wealthsimple Trade Penny Stock Fees

Wealthsimple doesn’t charge commissions for trading Canadian and American stocks, although that’s somewhat deceptive if you’re trading U.S. stocks. You have to fund your account with Canadian dollars, and Wealthsimple charges a 1.5% USD-to-CAD conversion fee for each transaction. That means a round-trip order of a U.S. stock would cost 3% — not a small amount, especially compared to other brokers.

You can bypass the conversion fee by subscribing to Wealthsimple’s Plus tier for $10 a month, but that means paying more for something you can get for free from other brokers.

Top Penny Stocks on Wealthsimple Trade

My Wealthsimple Trade penny stock picks are:

  • (NYSE: AMAM) — Ambrx Biopharma Inc. — The Biotech Penny Stock Spiker
  • (NASDAQ: LUNR) — Intuitive Machines — Not a Penny Stock, Not the #NextHKD
  • (NASDAQ: RIOT) — Riot Platforms Inc. — The Bitcoin Breakout Penny Stock
  • (NASDAQ: LUCY) — Innovative Eyewear Inc. — The Short Squeeze Penny Stock
  • (NASDAQ: SINT) — SINTX Technologies Inc. — The Post-Reverse Split, Post-Dilution Penny Stock
  • (NASDAQ: ICCM) — IceCure Medical Ltd. — The Post-Dilution Biotech Penny Stock
  • (NASDAQ: KALA) — Kala Pharmaceuticals Inc. — The Post-Supernova Biotech Penny Stock
  • (NASDAQ: OCEA) — Ocean Biomedical Inc. — The Recent SPAC Penny Stock
  • (NASDAQ: XPON) — Expion360 Inc. — The EV Battery Penny Stock
  • (NASDAQ: CING) — Cingulate Inc. — The First Green Day Penny Stock

1. Ambrx Biopharma Inc. (NYSE: AMAM) — The Biotech Penny Stock Spiker

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My first Wealthsimple Trade penny stock pick is Ambrx Biopharma Inc. (NYSE: AMAM).

Recently, AMAM has stepped off the gas. News of positive results for its prostate cancer drug had sent the stock on a five-day run, boosting its price more than 350% in that time.

Why We Like It

There’s plenty to like about a stock on the downside of a run — particularly if the end of the run isn’t caused by dilution.

I love to trade panic dip buys. There are sure to be some opportunities as AMAM trends down.

2. Intuitive Machines (NASDAQ: LUNR) — Not a Penny Stock, Not the #NextHKD

My second Wealthsimple penny stock pick is Intuitive Machines (NASDAQ: LUNR).

LUNR had a wild week after going public via SPAC. It briefly shot up 260% before slumping down to pre-SPAC prices.

It’s on this list because it’s acting like a penny stock. The internet has been calling this “the next HKD.”

Why We Like It

High-priced meme stocks can blow up your account.

Don’t ever buy the hype.

But there may be some panic dip buy opportunities on the way.

3. Riot Platforms Inc. (NASDAQ: RIOT) — The Bitcoin Bounce Penny Stock

My third Wealthsimple Trade penny stock pick is Riot Platforms Inc. (NASDAQ: RIOT).

Like other crypto stocks, RIOT had a rough 2022.

It had lost 85% going into December. From there, it’s bounced over 100%.

Why We Like It

Like other crypto mining stocks, this one is all about Bitcoin.

Bitcoin has leveled up in 2023. If it continues its run, so will RIOT.

4. Innovative Eyewear Inc. (NASDAQ: LUCY) — The Short Squeeze Penny Stock

My fourth Wealthsimple Trade penny stock pick is Innovative Eyewear Inc. (NASDAQ: LUCY).

This summer IPO hit its all-time low in December… Since then it has steadily trended up.

Twitter and Reddit traders noticed the squeeze brewing. It trended up 300% over the next six weeks on an extremely low float of 2.39 million.

Why We Like It

I tell my students not to go for home runs. So I don’t care that LUCY stopped short of going full-on supernova.

I traded it on February 7 for a small gain of $180 (starting stake $6,760). I saw the volume fading and cut it earlier than I would have liked.

I missed most of the move but still managed a profit.

5. SINTX Technologies Inc. (NASDAQ: SINT) — The Post-Reverse Split, Post-Dilution Penny Stock

My fifth Wealthsimple Trade penny stock pick is SINTX Technologies Inc. (NASDAQ: SINT).

If 2023 penny stocks needed an ambassador, they could do worse than SINT.

This collapsing penny stock did a 1-for-100 reverse split in December, regaining compliance with Nasdaq listing requirements. That led to a mini-run.

Seizing on the momentary momentum, SINT did a share offering in February, destroying the value of its newly-consolidated shares.

Why We Like It

It added over 2 million shares to its float in the offering… which brings its total float to around 2.5 million.

It’s still extremely low float. I don’t trust this stock, but I’ll be watching it.

6. IceCure Medical Ltd. (NASDAQ: ICCM) — The Post-Dilution Biotech Penny Stock

My sixth Wealthsimple Trade penny stock pick is IceCure Medical Ltd. (NASDAQ: ICCM).

ICCM uses a technique called cryoablation to freeze off tumors…

The stock surged on news that Medicare would pay for its treatment. Then it dumped out a new share offering.

Why We Like It

Dilution is part of the biotech game. Solid news like ICCM got beforehand isn’t always.

ICCM’s price seems to have stabilized. The next news might send it spiking again.

7. Kala Pharmaceuticals Inc. (NASDAQ: KALA) — The Post-Supernova Biotech Penny Stock

My seventh Wealthsimple Trade penny stock pick is Kala Pharmaceuticals Inc. (NASDAQ: KALA).

KALA went supernova on news of a new drug candidate in December. It spiked even higher on news of a private placement with an investor that presumably knows what they are buying.

It slumped into February, after filing for an upcoming share offering.

Why We Like It

Its tiny float hasn’t ballooned yet. It still has less than 1.5 million shares publicly available.

It traded 50 million shares in ONE DAY in December. I know this stock can spike — and it might have another before it dilutes.

8. Ocean Biomedical Inc. (NASDAQ: OCEA) — The Recent SPAC Penny Stock

My eighth Wealthsimple Trade penny stock pick is Ocean Biomedical Inc. (NASDAQ: OCEA).

After it debuted mid-February, it lost over 75% of its early value in the next few days.

Then new research data sent prices spiking by 450%.

Why We Like It

I don’t recommend trading stocks that don’t have a chart yet like OCEA.

I actually shorted it during its recent spike! OCEA is just one of a handful of stocks I’ve shorted in recent years…

I wouldn’t have pulled it off without TradeZero, my favorite broker for shorting hard-to-borrow stocks like OCEA.

Try TradeZero today and I’ll give you a FREE GIFT!

I made $390 on a way-too-safe day trade (starting stake $2,990). But that’s how I like to trade.

I cut it quickly because OCEA can do ANYTHING. It’s got a tiny float of 2.3 million. The market isn’t sure how to feel about it yet.

9. Expion360 Inc. (NASDAQ: XPON) — The EV Battery Penny Stock

My ninth Wealthsimple Trade penny stock pick is Expion360 Inc. (NASDAQ: XPON).

Since debuting last May, XPON was a lithium battery maker in search of a vehicle.

When it announced a non-binding LOI to build a lithium-ion battery manufacturing plant in the summer, the market didn’t bite. But now that it has an actual use, XPON is on the come up.

Why We Like It

I’ve been waiting for the EV sector to come back around. But traders have been burned one too many times.

Stocks like XPON are a stopgap. Like the brief surge that Twin Vee Powercats Co (NASDAQ: VEEE) experienced in the summer, the market has a soft spot for these niche EV offerings.

10. Cingulate Inc. (NASDAQ: CING) — The First Green Day Penny Stock

My tenth Wealthsimple Trade penny stock pick is Cingulate Inc. (NASDAQ: CING).

Here’s an example of poor news flow in penny stock land.

CING announced promising news from a Phase 3 study for its ADHD drug candidate after the market closed on February 23.

This sent the stock spiking into the next session. But even this unusual volume wasn’t enough to sustain its run, as it slumped into the February 24 close.

Why We Like It

The timing of CING’s press release wasn’t ideal. But it was still enough to get 37 million shares trading in this thinly-traded stock.

This sent CING up near 11-month highs. Now that CING’s on the map, I wouldn’t be surprised to see more news and another spike.

Key Takeaways

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Due to its simplicity and wealth of educational resources, Wealthsimple Trade can be a useful tool for newer traders. It also caters to a wider audience with its self-directed, automated, and cryptocurrency trading platforms.

Experienced traders who want a powerful trading partner might find Wealthsimple Trade lacking.

For me, the biggest drawback of Wealthsimple Trade is its lack of OTC stocks. Some of my best trades have come on the OTC markets. You might miss out if you exclusively stick to the major exchanges.

But Canadians don’t have a wealth of options for trading U.S. stocks. Wealthsimple Trade manages it well enough for many traders.

Are you a Wealthsimple Trade user? Share your experience in the comments below!

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Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”